BehiNd the
hEADLINES
domino’s faces marketing fund
furore amid potential 11 per cent
wage increase
A “screw up” led to Domino’s not releasing
the 2016 audit report on its marketing fund
to franchisees on time, generating additional
headlines for the brand after recent media
reports of worker underpayment.
The audit report of the $40 million marketing
fund was last released in December 2014,
according to a media report, with the most
recent report released nearly three months late
in early 2016 after inquiries by Fairfax media.
Domino’s CEO Don Meij blamed a “screw
up” for the oversight, however the Australian
Competition and Consumer Commission
(ACCC) has indicated it is looking at whether
Domino’s has breached the Franchising Code
of Conduct.The Brisbane-based ASX-listed chain, with
operations in Australia, New Zealand, Japan
and Europe is understood to have recovered
$4.5 million in outstanding wages from
franchisees in Australia who have underpaid
workers. Domino’s says it has “zero tolerance”
for wage fraud, and has conducted 456 spot
checks in the last three years, leading to 102
store audits, and investigated 88 complaints,
with a number of audit and complaint
investigations ongoing.
Investment analysts at Deutsche Bank have
estimated the company could face a hike in
wage costs of 11 per cent when it negotiates a
new enterprise agreement to replace one which
expired in 2013.
A proactive compliance deed between
Domino’s and the Fair Work Ombudsman has
also expired, with Ombudsman Natalie James
recently indicating at a Senate committeehearing that she is uncertain about the
prospects of a new deed being negotiated.caltex franchisees protest outside
head office
A group of about 70 Caltex franchisees,
workers and their families carrying placards
and chanting against the company’s
management protested recently in the streets
of Sydney CBD outside Caltex’s head office
following the company’s crackdown on wage
fraud.
The protestors brandished signs with messages
such as “Stop bullying franchisees” and “Stop
stealing our stores” to protest against the
audit and termination of franchisees for wage
underpayment, claiming that the business
model is not profitable, according to a media
report.hot toPics